Memorandum, State Department Summary of Telegrams

DEPARTMENT OF STATE OFFICE OF THE SECRETARY the WASHINGTON August 9, 1948 SUMMARY OF TELEGRAMS MIDDLE EAST Foreign Minister Bevin has discussed at some length with Ambassador Douglas the deep concern of the British cabinet over the security situation in the Middle East in general and Palestine in particular. Bevin feels that the Soviets might foster a resumption of fighting in Palestine, following which Soviet agents would stir up unrest in Iraq and Iran. In this way, and without firing a shot themselves, Bevin feels the Soviets could create complete chaos in Iraq and Iran to the detriment of US and UK strategic interests. Our Embassy in Moscow agrees that if the Soviets are halted in western Europe they are likely to turn to the Middle or Far East, with the Middle East appearing the more likely target at present. However, the Embassy believes that Moscow's line of attack in the Middle East would be through infiltration and subversion and not through any overt intervention. ITALIAN COLONIES Ambassador Dunn suggests that in considering the future political settlement for the Italian col- onies in Africa we should give serious consideration to proposing a broad plan to develop central Africa for emigration from Europe. He feels that some outlet for the surplus Italian population is absolutely essential if our efforts to reestablish the Italian economy are to succeed, and that a proposal of this nature, perhaps with the backing of the UK, France, Belgium and Portugal, would compensate the Italians to some extent for the loss of their African possessions. GERMANY Ambassador Murphy reports that while the non- Communist political leaders in Berlin are quite satisfied with the idea of quadripartite control of the Berlin currency, they fear that acceptance of a currency identical with that circulating in the Soviet zone would make it impossible for the four powers to actually exercise any control. Recent discussions in Berlin have still not solved the currency crisis in any satisfactory manner. DECLASSIFIED E.O. 12065, Sec. 3-402 State Dept. Guideline, June 12, 1979 By NLT- He NARS, Date 11-13-to